Yes, going very well!
Perhaps it's worth bearing in mind that the original IPO was an Aussie private equity sell-off - of sorts!
;)
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Yes, going very well!
Perhaps it's worth bearing in mind that the original IPO was an Aussie private equity sell-off - of sorts!
;)
Hint / conjecture in this article Rod might leave the stock market altogether
Love the word miracle in the headline
http://www.sharechat.co.nz/article/e...as-miraclehtml
Yes, it's a routine question for some journalist or other to ask Rod that one! Like a broken watch, it'll probably be right some time.
:mellow:
Would be nice to see an online revenue / %growth breakdown across the Group, could be one doing better than the other. Seems they're late to the online party (not very experienced in this digital stuff) if The Duke is ecstatic about only 10% or so online sales. 27% growth off an insignificant base should be easy, but you'd want to see 100%+ recurring growth if your online strategy was really humming, considering the online marketing reach extends way way beyond physical stores. Anyway, shareholders who are used to being excited about recurring 5%+ growth in what others are now saying is a challenging sector, will be chuffed by hearing 27% growth (5x) from online!
They have been a client of www.estaronline.com for a good few years.
So in fact they were early to the online party.
And that 27% growth is on a significant base.
Our natural confirmation bias tends to blind us to anything that might have any risk associated with it. Better I think to acknowledge and discuss it than sweep it under the carpet with some 'she'll be right never mind' comments from vested shareholders, especially recidivist promoters who never even acknowledge risk but purport to have some understanding of it.
Re online sales
Jan17 they said online sales ~6% group sales and +40% growth. Implies online sales ~$35m
Jan 18 they said online sales up about 30%
Jan 19 they said online sales up 27%
Means online sales grown to ~$60m or 9.5% of group sales
Pretty good ....but growth rate slowing
nice conclusion via deduction but mr Duke gives it all away in the sharechat link post above
”Online revenues in are now 9.5-10.5 percent of total revenues, Duke said.”
On an unrelated note,
Briscoes still proving (obviously with a few exceptions theres a strong correlation between a companies quality and the amount it gets discussed on this board.
BGP more often than not on very reasonable valuations and continues to deliver great results.
and with their superb R.O.E I will be expecting another increase in the dividend come march 31 :)
Solid BGR full year .....sales +4.43% NPAT +3.37%
Nothing spectacular but Rod just keeps keeping on. At least he’s not tagged as a growth company so doesn’t have to meet elevated expectations
Just let me know when they have a sale - need a new slow-cooker.
Rod his usual gloomy self
But did mention margins are under pressure and higher wages becoming a problem
And that’s before the accounting of leases change
http://nzx-prod-s7fsd7f98s.s3-websit...126/299290.pdf
Higher wages have hit retailers straight away.
Margins are already under pressure, and any fall in the NZ $ will hit all retailers.
I have my doubts about Living and Giving stores.
No mention of online sales,which I find surprising.
I received excellent service from their Salisbury Street store last week when I made a purchase.
Most probably be another long hard winter for NZ retailers.
I no longer hold a retail stock,although Craigs call Turners a retailer.
Solid.
2nd Quarter Sales to 28 July 20195/8/2019, 9:25 amMKTUPDTESales to 28 July 2019
Briscoe Group Limited (NZX/ASX code: BGP)
Highlights for the 2nd quarter (13 weeks) to 28 July 2019:
• Total Group sales $152.3 million, +4.05%
• Homeware sales growth, +2.32%
• Sporting goods sales growth, +7.61%
• Group same-store sales growth, +3.40%
• Total gross profit (dollars) growth, +3.69%
Highlights for the half-year (26 weeks) to 28 July 2019:
• Total Group sales $303.0 million, +3.34%
• Homeware sales growth, +2.57%
• Sporting goods sales growth, +4.68%
• Group same-store sales growth, +2.74%
• Total gross profit (dollars) growth, +2.40%
The directors of Briscoe Group Limited announce unaudited sales for the thirteen-week second quarter to 28 July 2019 increased 4.05% to $152.3 million from the $146.4 million achieved for last year’s second quarter. The Group’s homeware segment increased sales by 2.32% during this period and the sporting goods segment by 7.61%.
On a same-store basis, the Group’s sales for the second quarter ended 28 July 2019 were 3.40% ahead of the same period last year.
On a same-store basis, homeware sales increased by 2.32%, while sporting goods sales increased by 5.62% over the second quarter of last year.
Group sales for the first half, 26-week period to 28 July 2019, were $303.0 million, an increase of 3.34% on the $293.2 million achieved for the first six months of last year. The Group’s homeware segment increased sales by 2.57% during this period and the sporting goods segment by 4.68%.
On a same-store basis, the Group’s sales for the half-year ended 28 July 2019 were 2.74% ahead of the same period last year. The same-store calculation adjusts for two Rebel Sport stores opened by the Group at Kerikeri (February 2018) and at Papanui, Christchurch (November 2018), and also for the closure of the Living & Giving Store at Riccarton (March 2018).
On a same-store basis, homeware sales increased by 2.72% for the 26 week period while sporting goods sales were 2.76% ahead of last year.
Group Managing Director, Rod Duke said, “The very late start to winter has impacted our trading patterns for this second quarter, especially for our seasonal homeware product. The successful winter clearance programme which closed out the second quarter, boosted sales but did come at the cost of gross profit percentage.
The second quarter has seen a strong performance across our sporting goods segment with sales growing at over 7% ahead of last year.
“We are relatively pleased with the sales performance for the second quarter and despite continued pressure on margins and increased wage cost pressures, the second quarter has produced a bottom-line profit marginally ahead of that for the same period last year.
“Sales through our online channel continue to grow strongly and are now approaching 11% of total Group sales, having grown at over 20% compared to last year’s half-year.
“In addition to the competitive trading environment, this year’s reported bottom line, as noted in last year’s financial statements, will be impacted by the introduction of the new accounting standard in relation to the treatment of leases (NZ IFRS 16). The impact to the Group’s income statement will be to lower the reported net profit after tax (NPAT) in comparison to the NPAT which would have been reported under the previous accounting treatment. The effect of this change on NPAT will occur gradually throughout the year and will impact the first half tax-paid profit by around $1.2 million in addition to the change incurred from normal trading. It is important to note that the impact of NZ IFRS 16 has no cash effect to the Group and is for financial reporting purposes only. The new standard will significantly impact all businesses with sizable portfolios of leased properties.
“New Zealand retailing remains highly competitive, sensitive to continued cost and margin pressures as well as subdued consumer and business confidence.
“In relation to the Group’s half-year profit, we anticipate a trading performance similar to the first half of last year. However, an additional negative adjustment will be made to the final reported net profit after tax (NPAT) of around $1.2 million as a result of the new leases accounting standard. The directors expect to release the half-year profit announcement on 17 September 2019.
Rod sounds more dismal than he normally does
http://www.sharechat.co.nz/article/b...-uncertainhtml
yeh it all sounds very hard graft these sales increases but no profit increases. divi up tho.
Solid sales growth in 3rd quarter.
https://news.iguana2.com/macquaries/NZSE/BGP/343736
This link for those not part of the big end of town
http://nzx-prod-s7fsd7f98s.s3-websit...736/311106.pdf
Great growth ...in a ‘very competitive market’ ...that’s way worse than the normal ‘challenging’
20% online growth is excellent.
Nice being welcomed into Briscoes Salisbury Street this morning by Tammy Wells.
High kiwi $ lately going to be good for Briscoes.
I read Rod talking about how they have moved a few store locations to take advantage of a few very cheap leases offered and Theres now the much larger rebel sport in riccarton and Briscoes moving to bushinn so will be very interesting to see how it effects the bottum line numbers.
Steady result from Briscoes. This year will be another matter!
https://www.nzx.com/announcements/350004
As Briscoes is one of my largest holdings really pleased to see this. What quality management really looks like.
https://www.stuff.co.nz/national/hea...impacts-retail
Could be a rather hefty hit coming in the BGR Balance sheet for write down of it's KMD stake if the KMD SP stays down around current levels - depending on how they deal with Investment write-downs & whether they go through P&L or directly to reduce reserves now ?
Rod's my man ... no stores open, no income but NO REDUNDANCIES
https://www.stuff.co.nz/business/pro...-briscoes-boss
I see that Kathmandu is now bigger than Briscoes. When's the Kathmandu take over of Briscoes happening, lol?
they’re only bigger because xavier has been under the blight of the institutional imperative and not about shareholder returns like Rod.
if you compare the balance sheets and environment going forward, Briscoes in a much better spot to be on the hunt.
I’ll add that I tuned in this morning to the AGM and was pleased by how everyone presented. Looks like a very big push into digital which is good.
very good inventory management, will be same level as last year even with lockdown etc..
And he explained why Briscoe didn't take up the Katmandu share offer.
I seem to recall he said something about preferring to have the money available for Briscoes in case things got nasty.
Mr Market seems to be saying 'when will the signs of the Better flow through into the SP' ?
Will a nice fat juicy Div in near future help fix the market perception ?
When just about everything else is jumping & rising in the early post C-19 approaching spring, the NZX Fairy's Magic Wand
seems to repeatedly either miss or deviate away from BGR fairly quickly .. ;)
Briscoe Group is certainly one share that is under rated. They have solid financials, excellent management and less likely to be as affected by a recession compared to other retailers (HGL, KMD). I see that homewares will hold stronger trade during a recession and with all the people renewing health and fitness goals during the lockdown, Rebel Sport will get on track faster.
They probably could pump the SP with an announcement of something vaguely positive (like KMD) and raise the share price. I'm happy to wait for the next financial report.
As an aside, the ticker code is BGP not BGR.
I don't think Rod is particularly interested in pumping the SP. BGP have a history of under-promising and over-delivering.
:)
Rod never really liked online business.Was always a bricks and mortar retailer.
Now that Corona Virus, has moved online sales growth as a % of total revenue years ahead.In 2 months it has moved forward 2 to 5 years.
It is therefore going to really interesting seeing what direction Rod takes Briscoes, now he has embraced online l.
I am not sure that he doesn't like online sales but rather than he doesn't see them replacing their traditional channels. He was on radio the other money talking about how they are going and made the comment that online sales had been strong and he expected that to continue into the future
https://www.nzherald.co.nz/business/...ectid=12341769
I don't have access behind the paywall but looks like an interesting article
It said.... although sales down but Briscoe is well position. Mr Duke cancelled dividend n as well as his salary...all ex also reduced thier salary
With no debts n good cash as they did not buy in KMD...
Briscoe has high exposure to that. If people are going to spend a lot more time at home, they might want to upgrade their appliances and homewares.
Not to mention an increased focus from many people on health and fitness so Rebel Sport should benefit.
Wonder if this is Rod’s way of telling Nick from WHS he’s useless.
Go Rod ...good guy
http://nzx-prod-s7fsd7f98s.s3-websit...693/326839.pdf
Last quarter online sales at 23% even with the rush back into the shops: [ announcement ]
Baulked at topping up at $3.40 yesterday, not timing my buys to perfection, as usual ;)
Bloody amazing sales report
Essentially what lost through lock down has been caught up
With efficiencies etc etc no wonder profit going to be better than expected
Go Rod
There has been an unusual level of activity post lockdown in some retail business. My cmp has also been up 25-30%. Pent up demand? Retail therapy? Getting out and about? Reclaiming a sense of normality perhaps? Replacement of broken appliances during lockdown. Upgrading etc. Will be interesting to see how long lived it is eg; Over next 6-24 months. My current employment is in retail sector. Dont hold any stock.
ANZ dont think it will last ... this week they saying
ANZ warns economy may head south again from November
https://www.stuff.co.nz/business/122...-from-november
Well, of course it may. ANZ's economist has it both ways...…………"While not our forecast...……..
:rolleyes:
A lot of the covid stimulus is designed to finish just before the election lol , mortgage deferral , wage subsidies etc but the effects of them stopping wouldnt show up till later. if the govt extends some of these schemes it probably push the down turn out to early next year is my guess
Absolutely. I think selling anything which covers a practical 'need' will always have longevity, for obvious reasons. The 'wants' and more 'feel good' non-essentials will surely dwindle as/if harder times ensue. Manipulation of human behaviour, marketing, programming, what is actually a 'need' or 'important'?? Differs depending on perspective, habit, available funds etc. Its possibly pretty fair game in 'general' retail up until and only if things become exponentially more tough for the 'middle-class' working folk and beyond.
breakout above 3.50 resistance level
breakout seems to be holding
1/2 year results due out on the 8th. They had a really good rebound after the first lockdown so will be interesting to see if sales have continued to be strong
So.... BGP is trading 0.86c off its pre-Covid high of ~4.50 (23.6% off). In comparison, HLG is trading $1.63 off its pre-Covid high of ~$6.00 (37.3% off).
HLG with (what I perceive to be) a slightly better online offering, which is really important (especially if we bounce around these 'levels' for a bit). HLG also has a stronger divi (0.15 deferred, plus another in DEC and another in APR of maybe ~0.16 & ~0.15).... BGP with maybe 0.18(ish) total, so....at a guess, its maybe 7% vs 5%
Assuming both retailers (bearing in mind BGP is slightly more 'defensive' because of its diversification) continue to weather the storm and the divi-hounds (or beagles) come out in a low-interest environment, AND they both match their pre-covid results in ~2022, it seems to me that HLG has a bit more headroom for a return...
disc. hold HLG
disc. dont hold BGP, but happy to be convinced! (was looking for a ~$3.10 entry after Q2, but I seem to have missed the boat)
Actually I don't know much about HLG, but I presume they have debt because most listed companies do. BGR is pretty unusual in this regard. It served them well in 2008. It is serving them well now too I should think. This makes them a reasonably safe stock, at least in comparison with other retailers and I should imagine this is taken into account by the market.
A rough calculation at lowest point of Covid times Mar - Apr suggested estimate of KMD
holding red ink on revaluation value in BGR Books was approx $100 Mil or 25% of BGR SHF
Since then the diluted BGR holding in KMD has significantly recovered in terms of SP
HLG & BGR are both pretty astute operators in their respective retail sectors & equally deserving of
much respect
I rate HLG slightly ahead due to their past up to recent dividend dividend record and lack of
equity holdings - rather 100% owned Australian interests, which have fared apparently well
when other competitors were failing.. The Rag trade is not easy for many operators at retail
As a holder of an expensive pre Covid-19 BGR bundle, the KMD holding very nearly meant not increasing,
which have now done & pleased to have done so. SP has now exceeded the averaged down cost
Let's see if BGR match HLG in now paying out something significant towards recognising
the cancelled March 2020 BGR Final Dividend
Discl: Holder in both HLG & BGR
HLG has always had a high dividend yield , stocks with higher than usual dividend yields is because the market places a risk premium that the dividends might not be paid at some time so the compensation takes this into account. another example is AIR
BGR div yield is lower because as you say its products are more defensive than HLG. you can wear holey clothes if you choose but you cant make your coffee or toast with a broken unit
BGR has better liquidity ratios than HLG and also has more assets per share if you divide total assets/ total liabilities and if you add in the 20 odd mil BGR saved on the last div rough calc might suggest 90m odd cash on hand now in the report to come. so BGR has far more flexiblity in the balance sheet.
Very rarely will you find a company where management is both capable and their interests are so closely aligned to shareholders as with Briscoes. Sure it can result in less risk taking and possibly slightly less aggressive growth ambitions at times when Rod is getting on in years but when the Rod owns most of the ship you know he’ll see it through the storm with little fuss. If the stockmarket closes for 10 years you can be assured of excellent management and reliable dividends.
You’ll have to look very hard to find management forgoing their salary for the benefit of shareholders.
up to $3.74 but on very small volumes. Sharesies crowd having a look now?
saved 20 odd million from not doing the end of year div to add to the 67 million in cash on hand already , so plenty of cash in the bank to reward share holders hopefully.
Ummm yes... but that's operating working capital debt - normal expenses + employees and paper 'liabilities' created by the change in accounting standards for leases. No bank debt. The accounting standard changes are of course designed to make financial statements 'easier' to understand!
Well done Rod
Rod Duke, Group Managing Director, said: “We’re delighted to have produced a strong first half result despite the extraordinary upheavals experienced during this first six months. To achieve a profit so close to last year, with stores unable to open for 50 days of that time, is a great result.“
And a divie for those who like divies
http://nzx-prod-s7fsd7f98s.s3-websit...417/330232.pdf
One thing that’s brilliant about Briscoes financial reporting they don’t bother with this EBITDA crap or underlying or normal or other such things.
awesome result considering the covid situation
increased dividend on last year
gross margins up
cash balance near 100m
sales this new period up on last year
pretty impressive
"The steps taken by the group to protect the company and preserve liquidity have ensured our balance sheet has remained strong which is critically important in these uncertain and unpredictable times. The strong balance sheet gives us the flexibility to continue to protect the business as well as fund strategic initiatives to grow company profitability," Duke said.
August sales had kicked off strongly in the second-half, Duke said
https://www.nzherald.co.nz/business/...ectid=12363008
Well said SB. The management is just 1 person Rod the great and he owns how much, 70%?? Also, he did not fire even a single employee during Covid. Profits will flow through as dividends. No debt. Institutions will not be interested in Briscoes and a good stock for us retail investors..
Heard Rod on the radio with HDPA yesterday afternoon saying second half sales had already started red hot and H2 could be one of the best half years on record. Not sure if this is usual language for Rod, but thought it was quite interesting.
https://www.newstalkzb.co.nz/on-demand/week-on-demand/
Tuesday 08/09/20 at 18:00, 7 mins in
It’s a rare day that Rod gets this excited
Usually only when he’s putting the boot into The Warehouse
oops sorry my bad. Thanks
https://www.newstalkzb.co.nz/on-air/...oups-rod-duke/
heres the direct clip
listening to it now and WOW have never in my days heard Rod talk like that!
duke da man :t_up: